Kung Lao has free reign to do almost anything he wants here. Bullet kicks will stop most of the acid spit spam, but they have to be quick or Lao could eat an uppercut. Bullet kicks are advised anyway to get past Reptile's aaRH defenses. Slides get snuffed by a whirlwind spin (if anticipated) and the CQC game is far in Lao's favor as well. If Reptile goes invisible, throw a low hat (since he'll likely be ducking,) teleport to find him or use a whirlwind spin (expecting a jump-in) for big damage.
Reptile needs to be unpredictable and elusive, like just about every other matchup. Try to go invisible and look for a teleport. Uppercut when Lao re-appears. Reptile can't just duck and wait for a mistake because Lao's low hat toss will find him. Look to slide or jump-in and then sweep, RH, crossover, etc.
Lao's in-your-face offense makes it very hard for Reptile to go invisible, let alone do much. Lao wins this 8-2.